Farmers Sound Alarm On Fuel & Fertiliser Pressures Amid Global Tensions By Queensland Farmers’ Federation CEO Jo Sheppard

The Queensland Farmers’ Federation, our peak body members and corporate partners remain concerned by the on-farm impacts of global tensions in the Middle East.

The Federal Government recently committed to establishing a dedicated fertiliser taskforce and is exploring mechanisms to underwrite fertiliser shipments to stabilise supply chains. National Cabinet also agreed to the National Fuel Security Plan aimed at coordinating a consistent response across the Commonwealth, States and Territories. The Plan outlines indicative policy settings across four levels, outlining individual, Commonwealth and State and Territory actions, including the potential for fuel rationing at level four.

The Government has also halved the fuel excise, reducing the cost of petrol and diesel by 26.3 cents for three months, with the heavy road user charge also reduced to zero during the same period to relieve freight costs.

QFF CEO Jo Sheppard said that while the reduction in the fuel excise will do little to assist farmers, QFF supports the government’s clear message acknowledging the importance of diesel and fertiliser to the national economy, noting that planning ahead is essential if we are to be in a position to support Australians through the impact of the global energy shock.

“Australia is lucky enough to be home to some of the best energy resources in the world – gas, oil, coal, sun, wind and a significant bio-energy opportunity. A National Fuel Security Plan should not just be something we pull out during times of crisis but should be a long-term strategy with key implementable milestones so that we are continually building our sovereign energy capability,” Ms Sheppard said.

“As a nation we have been complacent. We can be complacent no more.”

CANEGROWERS Australia Chief Executive Dan Galligan said the situation highlights how exposed Australia remains to global fuel shocks.

“Australia imports the vast majority of the fuel we use, and much of it moves through some of the most volatile regions in the world,” Mr Galligan said. “Ethanol made from Australian crops like sugarcane can replace a portion of imported petrol and provide a reliable domestic supply. An enforced E10 mandate would mean around 10% of the fuel Australians use could be produced right here at home rather than shipped in from the other side of the world.”

Cotton Australia General Manager Michael Murray said while most cotton growers appear to be getting their required diesel eventually, the cost is putting huge pressure on financial sustainability.

“We should have learnt a lesson from COVID-19, and we really must learn it now, we must boost our sovereign capability to produce inputs that are vital for our economy,” Mr Murray said.

Queensland Fruit & Vegetable Growers (QFVG) CEO Scott Kompo-Harms GAICD said horticulture producers are already operating under sustained cost pressures, and the current global disruptions are pushing many businesses to breaking point.

“Queensland horticulture growers have been dealing with rising input costs for years, but surging fuel prices, transport levies, and emerging shortages of critical inputs such as plastics and fertilisers are now compounding those pressures in a way that is simply unsustainable,” Mr Kompo-Harms said.

QFF and our peak body members are continuing to seek real time feedback from farmers and communities and are working with industry and government to support practical responses as the situation evolves. Farmers are encouraged to report supply issues to their peak industry body.

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